American Apparel Settles Lawsuit with Woody Allen

May 21, 2009

American Apparel will pay Woody Allen $5 million in a court settlement announced recently.

Allen sued last year after his image appeared on American Apparel billboards without his permission. The dispute dates to the spring of 2007, when American Apparel posted billboards in New York and California with a photo of Allen dressed like a Hasidic Jew in the film Annie Hall. American Apparel CEO Dov Charney has said the billboards were designed to make a joke comparing Allen (labeled in Yiddish text as a supreme rabbi) to the plight of the company, which was facing several sexual harassment lawsuits. Charney says the company removed the billboards after less than a week when Allen's representatives complained.

Allen sued in March 2008, saying the billboards violated his right to privacy and right to publicity. American Apparel denied the claims and argued that the use of Allen's image was protected by the First Amendment and various legal exceptions for public interest, fair use, parody and social commentary, and that Allen had released the rights he had on the image. The case was set to be tried in the U.S. District Court, Southern District of New York.

Outside the courthouse on Monday, May 18, Allen told reporters, "It's of course possible by going through the trial a jury might have awarded me more money but this is not how I make my living and five million dollars is enough to discourage American Apparel or any one else from ever trying such a thing again," according to The Daily News.

Charney posted a response to the settlement on the American Apparel blog. He says American Apparel's insurance company was responsible for the settlement, and adds: "I also harbor a sense of remorse and sadness for not arguing an important issue regarding the First Amendment, particularly the ability of an individual or corporation to invoke the likeness of a public figure in a satiric and social statement." In his blog post, Charney writes: "The billboards were designed to inspire dialogue. They were certainly never intended to sell clothes."

Source documents: Here are some court documents in PDF format from the case if you're curious to learn more. Read Allen's complaint, American Apparel's answer, and the settlement order.

Source: Photo District News

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